Rajendra Kumar Jain Vs Commissioner of Customs (Port) Kolkata & Anr. (Calcutta High Court)
The Calcutta High Court allowed the appeal concerning the rate of interest payable on delayed refund of a pre-deposit under the Customs Act, 1962. The substantial question of law before the Court was whether the Tribunal was justified in denying interest at 12% per annum on the refund amount of the pre-deposit.
On 20 August 1998, the Director of Revenue Intelligence seized Rs.9,93,200/-, treating it as liable to confiscation as alleged sale proceeds of goods liable for confiscation. By order dated 30 November 2018, the Adjudicating Authority held that the cash was not liable to confiscation but imposed a penalty of Rs.65 lakh and sought to appropriate the seized amount towards the penalty.
The appellant challenged the order before the CESTAT. By order dated 22 April 2000, the Tribunal directed that the seized amount of Rs.9,93,200/- be treated as a pre-deposit under Section 129E of the Customs Act, 1962. Subsequently, by order dated 17 December 2002, the Tribunal allowed the appellant’s appeal and set aside the order of confiscation and penalty, making the pre-deposit refundable.
As the refund was not made, the appellant filed Writ Petition No.1601 of 2005. By order dated 5 September 2005, the respondents were directed to consider the refund claim within three weeks. On 1 December 2005, the Commissioner of Customs directed refund of Rs.9,93,200/- with applicable interest. The Assistant Commissioner thereafter ordered refund on 5 January 2006, together with interest of Rs.1,74,803/- at 6% per annum.
